logo
Ministry tells VCs to assess SST expansion impact on students

Ministry tells VCs to assess SST expansion impact on students

The Star3 days ago
SUNGAI PETANI: The Higher Education Ministry has instructed university vice-chancellors to conduct a detailed study to assess the impact of the expanded scope of the Sales and Services Tax (SST) on their students.
Higher Education Minister Datuk Seri Dr Zambry Abd Kadir said the objective of the study is to determine whether the SST expansion, which came into effect on July 1, has directly or indirectly contributed to higher learning costs.
"We will examine in detail what is meant by the alleged increase in costs. What has been announced by the government relates to higher fees for international students coming to study in Malaysia due to increased tariffs or taxes on their education," he said.
"We've already communicated this matter and gathered feedback. However, there may be other elements, either directly or indirectly, affecting local students as well," said Zambry, who is also Barisan Nasional secretary-general and Umno supreme council member, to reporters after officiating the Merbok Umno division meeting here Saturday (June 5).
Expanding on the matter, Zambry said the study would cover all aspects related to student learning, including utility costs such as electricity for those living in rental housing.
Previously, Universiti Utara Malaysia (UUM) Student Representative Council president Mohamad Amar Aidid Mohd Zain was reported as saying that the expanded scope of SST, effective since Tuesday, was believed to have financial implications for students.
According to Mohamad Amar Aidid, the inclusion of digital subscriptions, electronic repairs, laundry services and online purchases under the SST has had a direct impact on students' cost of living.
Meanwhile, Zambry said the Malaysian Higher Education Blueprint 2025-2035, developed by the ministry, has been finalised and is expected to be launched by Prime Minister Datuk Seri Anwar Ibrahim this November.
On reports of university students being diagnosed with HIV, Zambry said the ministry is leaving it to the respective institutions to monitor the situation and take appropriate action. - Bernama
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

The OPR dilemma
The OPR dilemma

The Star

timean hour ago

  • The Star

The OPR dilemma

PETALING JAYA: Economists are divided on whether Bank Negara should cut the overnight policy rate (OPR) at its Monetary Policy Committee (MPC) meeting tomorrow. For the past two years, the central bank has kept the OPR unchanged at 3%, following a 25-basis-point (bp) hike on May 3, 2023. That adjustment was aimed at normalising monetary policy after the pandemic-induced low-rate environment. Since then, Bank Negara has described its monetary stance as 'slightly accommodative,' maintaining a balance between supporting economic growth and managing inflation. However, the second half of financial year 2025 (2H25) is expected to bring new challenges, including fiscal reforms such as the rationalisation of RON95 fuel subsidies, an expanded sales and service tax (SST) and rising external trade uncertainty. Among those advocating for a rate cut is Bank Muamalat Malaysia Bhd chief economist Mohd Afzanizam Abdul Rashid, who argues that a 25-bp reduction would help ease rising pressure on borrowers and sustain private consumption. He pointed to the widening real interest rate, which rose to 1.8% in May from 1.6% a month earlier, indicating that inflation-adjusted borrowing costs are becoming increasingly expensive. 'This means that, in real terms, borrowers are paying higher interest to service their debts. If this situation persists, it might weigh on aggregate demand,' the economist told StarBiz. Mohd Afzanizam noted that while headline inflation could edge higher in the coming months – driven by the gradual removal of fuel subsidies and the increase in service tax from 6% to 8% – these changes are administrative, rather than demand-driven. 'This is not demand-driven inflation. It's a one-off adjustment, and in such a case, monetary policy should prioritise growth over price controls,' he said. Socio-Economic Research Centre executive director Lee Heng Guie is also betting on an OPR cut, citing trade tariffs uncertainties that may cloud exports and spill over into domestic demand. He cautioned that both business and consumer sentiments have shown signs of weakening, although the services sector remains relatively sturdy. > TO PAGE 2 Still, Lee described recent economic indicators as a 'mixed bag'. 'Exports declined by 1.1% in May, growth in the manufacturing sector grew by 5.6% in April and manufacturing sales up 4.8% in April. The labour market remains solid, with the unemployment rate remaining low at 3% in April. 'Inflation remains moderate amid concerns about inflation risk due to the expanded SST and rising electricity tariffs in 2H24,' he said, adding that RON95 subsidy rationalisation remains a key 'wild card' for inflation. A Bloomberg poll of 23 economists showed that roughly half, or 12 of them, projecting a lower OPR. However, there are concerns that a rate cut could dampen the ringgit's recent gains against the US dollar by narrowing the yield spread with the US federal funds rate. Mohd Afzanizam downplayed such concerns, noting that the ringgit has appreciated 5.3% against the greenback year-to-date. He views the ringgit's strength as part of a broader shift in global currency dynamics. 'The current dynamics in the foreign-exchange markets are evolving,' he said, pointing to growing doubts about the long-term strength of the US dollar. 'The US fiscal and trade policies are affecting its growth outlook, which supports the de-dollarisation trend. On that note, we are probably going to see the ringgit appreciate against the US dollar on a sustainable basis,' he added. Maybank Investment Bank Research (Maybank IB) analyst Winson Phoon also supports a preemptive 25-bp rate cut. In a recent note, he argued that while current economic data may not yet warrant a cut outright, early action is prudent given weakening growth momentum and rising external risks. 'From a risk management perspective, we believe the risk of cutting too late clearly exceeds that of cutting too early,' he stated. Phoon also highlighted that Bank Negara's MPC statement in May had already struck a dovish tone, opening the door for monetary easing. He noted that the bond market – particularly Malaysian Government Securities – has largely price in a 25-bp rate cut. As such, market reaction following the MPC meeting will depend more on the central bank's forward guidance, whether it signals further easing or a pause. He added that if Bank Negara opts to keep rates unchanged, it could lead to a slight increase in bond yields. Taking the opposite stance, economist Geoffrey Williams sees no urgency for Bank Negara to act. He believes the central bank should hold rates steady, arguing that inflation remains under control and growth is still within a healthy range. 'Inflation is low and was very low in the latest data. While it may rise slightly due to fiscal reforms, it will remain around or below 2% for the year,' he said. Williams expects any inflationary pressures, including from the expanded SST and RON95 fuel subsidy rationalisation, to be short-lived, adding that stable interest rates would help prevent inflation momentum during these policy changes. The economist forecasts gross domestic product growth to come in at or slightly above 4% in 2025, and views the domestic financial system as stable and resilient. 'So there's no real reason to change interest rates. The current policy remains accommodative, and that should be sufficient to support growth,' he said. Williams also voiced concerns that a rate cut could lead to excessive borrowing, particularly when household debt levels in Malaysia are already among the highest in South-East Asia. 'Borrowing is already high at a 3% OPR. Lowering rates could push it higher, which isn't desirable if rates need to rise later. 'Borrowers could find themselves trapped in loans they took at low rates. Meanwhile, savers would also suffer, as fixed deposit returns are already barely keeping up with inflation,' he said. As for the ringgit, Williams believes the currency's gain is driven largely by global capital flows and trade sentiment, not by domestic monetary policy. 'The rate isn't the main driver of the ringgit right now. It's more about the international capital movements and trade policy expectations,' he added.

Proton ends first six months of 2025 with increased market share
Proton ends first six months of 2025 with increased market share

The Sun

time12 hours ago

  • The Sun

Proton ends first six months of 2025 with increased market share

PETALING JAYA: Proton has closed its books for the first six months of the year with an increased share of the Malaysian automotive market. Group sales in June amounted to 11,069 units, a slight increase over the same month in 2024, while total year-to-date (YTD) sales totalled 72,156 units, the second highest in the industry. Market share for the month is estimated to be at 20.7%, an increase of 1.1% over the previous month and 1.2% ahead of the YTD figure of 19.5%. Conversely, total industry volume (TIV) is estimated to have closed at 53,500 units in June, a reduction of 21% compared to the TIV figure of 68.007 in May. One of the constants for Proton's sales performance has been the strong performance of its B-segment SUV model, the Proton X50. Launched in October 2020, over 140,000 units have been sold in Malaysia and overseas markets, firmly cementing its position as the sales in its class for five years in a row. For June 2025, 1,657 units of the Proton X50 were sold, keeping it ahead of all competitors in the class. The total includes 353 units for the export market where the model accounts for 47% of the company's total export volume. For the first half of the year 11,361 units have been sold, marking an increase of 11.3% over the first six months of 2024. While sales of the current model remain strong, Proton is launching an all-new Proton X50 this month. Depressed market conditions in June resulted in lower sales compared to May but there were three Proton models that ended the month as segment leaders. One of these was the Proton X50 while the other two were the Proton X90 and Proton S70, which continued to lead the D-segment SUV and C-segment sedan markets, respectively. The model with the highest sales growth figure for the first half of 2025 is the Proton X70. 'After performing strongly in May, automotive sales dropped by 15,000 units in June due to external factors such as rising tensions in the Middle East and the expansion of the scope of SST affecting buyer sentiment. Despite this, Proton managed to outperform the market to increase our market share percentage ahead of a busy second half of the year where we have a full slate of events and model introductions. With new models arriving in our showrooms, the outlook is for the company to have a stronger second half to 2025 as we seek to increase sales for our ICE and EV offerings,' said Proton Edar deputy CEO Zhang Qiang.

NEXG secures contract extensions from Home Ministry worth over RM45m
NEXG secures contract extensions from Home Ministry worth over RM45m

Malaysian Reserve

time15 hours ago

  • Malaysian Reserve

NEXG secures contract extensions from Home Ministry worth over RM45m

NEXG Bhd (formerly known as Datasonic Group Bhd) has secured three contract extensions from the Ministry of Home Affairs (KDN) via its wholly-owned subsidiary, Datasonic Technologies Sdn Bhd (DTSB), for the continued supply and maintenance of national identity and travel document systems. The company announced today that DTSB received and accepted letters of extension (LOE), all dated July 2, from KDN on July 7, 2025. The first extension involves comprehensive maintenance services for card personalisation centres at the National Registration Department (JPN) for a period of 14 months, from December 1, 2025 to January 31, 2027. The additional fifth ceiling contract value is RM15.86 million, inclusive of 8% sales and service tax (SST). The second contract covers the supply of MyKad, MyTentera and MyPOCA raw cards and consumables to JPN. It has been extended for six months from December 1, 2025 to May 31, 2026. The additional third ceiling contract value amounts to RM29.68 million, bringing the total cumulative value of the contract to RM146.03 million. The third contract relates to the supply of Malaysian passport documents and polycarbonate biodata pages to the Immigration Department (Jabatan Imigresen Malaysia). Both scopes have been extended for a further six months from December 1, 2025 to May 31, 2026, with no changes to the contract ceilings or quantities. As part of the terms, DTSB is required to maintain performance bonds with extended validity periods until May 31, 2027. This includes RM2.23 million for the passport documents contract and RM3.53 million for the polycarbonate biodata pages. NEXG said the contracts are expected to contribute positively to the group's earnings and net assets per share for the financial year ending March 31, 2026 and the duration of the respective contracts. NEXG has been a longstanding technology partner to the Malaysian government in delivering secure personal identification solutions, including biometric passports and national identity cards. –TMR

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store